Ryan Woods and Chris Dornfeld, the pair behind the most expensive redevelopment plan to date for the Hadley Township site in Richmond Heights, have missed the city’s deadline to show they have the money to move their $394 million project forward.

The partners at United Plaza LLC are the latest to pursue the redevelopment, which would transform about 60 acres of land just south of Highway 40 and east of Hanley Road into a mixed-use area.

On Aug. 16, United failed to post $3 million in escrow as proof of its financial ability to proceed with the redevelopment, a key requirement in its agreement with Richmond Heights. As of Sept. 29, United still had not posted the money, according to Richmond Heights City Manager Amy Hamilton.

Dornfeld said the scale and complexity of United’s development plan presented challenges, given the economy. “We have agreed to place funds in escrow to cover the city’s unexpected costs associated with the project in addition to the $120,000 that was already provided to the city to cover their legal and consulting fees,” Dornfeld said in an email. “We expect to have those additional funds in escrow shortly.”

Originally, the city of Richmond Heights had set a deadline of June 30 for United to notify residents of its intent to close on the properties within 30 days. United exercised a one-time extension in June that gives it until Oct. 30 to give homeowners notice to close, Hamilton said.

The Hadley Township area encompasses predominantly residential properties. United’s initial plan called for housing, hotels, retail and office space, and an 8,500-seat soccer stadium, which has since been scrapped.

During a city council meeting Aug. 17, Dornfeld acknowledged the developer’s default and “promised that the escrow deposits would be made the next day,” according to documents on Richmond Heights’ website. Dornfeld told the council that United had encountered “complexities in wiring funds” out of its accounts.

Richmond Heights officials gave the developers 10 days to cure their default, which they failed to do. “That’s still where we’re at,” Hamilton said.

In a Sept. 10 letter to Richmond Heights residents, Hamilton stated, “As of this date, the matter is still unresolved and any effort to carry out the development agreement will continue to be delayed unless and until receipt of the escrow deposits is confirmed by the title company.”

The city has not taken any action against United other than notifying the developer of its default, Hamilton said.

In addition, United has not secured contracts for all parcels of land within the redevelopment area. As of Sept. 29, United had three of the 222 parcels’ contracts outstanding. The remaining parcels not under contract are two commercial properties, including the Shell gas station at Hanley and Dale Avenue, as well as one residential property.

In an August interview with the Business Journal, Dornfeld said United expected to “be in construction by early next year.” At the time, he said United had $75 million in committed private equity for the project but declined to disclose the source.

While Hamilton said Richmond Heights officials had seen those funding documents, she said those documents were unrelated to the $3 million escrow requirement.

United’s proposal follows plans proposed by some of the area’s largest developers, including Michelson Organization and Mills Properties.

Michelson Commercial Realty and Development wanted to buy 200 properties for its proposed $190 million, which had been on the drawing board since 2005. However, Michelson never secured financing for the project because of tight credit markets and subsequently missed its January 2009 deadline to give Hadley Township homeowners notices to close.

Mills Properties Chairman and CEO Bruce Mills said his proposal never materialized because he wanted to develop only about 25 percent of the Hadley site, whereas Richmond Heights preferred a developer committed to the entire project.

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